Rent increases

The rooming house operator cannot include anything in your rooming house agreement that makes you responsible for paying an increased amount of rent if you break any of the rules of the agreement.

Any term that does this is prohibited (banned). It is an offence to include a prohibited term in a rooming house agreement. To learn more, see the page on this website about leases (rental agreements).

If your rooming house agreement includes a prohibited term

If you have a rooming house agreement that includes a prohibited term, the rooming house operator cannot enforce it. If the rooming house operator refuses to remove the term from your agreement, you can apply to VCAT, which can order that the term does not apply. For information on applying to VCAT, see our page about going to VCAT.

You can also report an offence to Consumer Affairs Victoria. It can issue an infringement notice (fine) to the rooming house operator if they failed to follow the law.

The rooming house operator must use the official Consumer Affairs Victoria form: Notice of proposed rent increase to resident of rooming house [Word].

The notice of rent increase can be given at any time. However, the rent increase cannot begin until:

• At least 90 days have passed since the notice was given (the minimum notice period), and
• 12 months since the last rent increase took effect

The rent increase also cannot begin during a fixed-term rooming house agreement. A fixed-term agreement is an agreement that has an end date. For example, the agreement could be for 6 or 12 months.

Only one increase can be listed in each rent increase notice.

The notice of rent increase can be given to you:

• In person (between 8 am and 6 pm)
• By mail, or
• Electronically, if you have given consent to receive notices this way

For more information on consenting to have notices sent electronically, see our page about starting a tenancy.

The rent increase notice must include:

• The amount of the rent increase
• Details about your right to apply to Consumer Affairs Victoria to have the proposed increase assessed if you think it is too high
• The date the rent increase starts

If the rooming house operator does not follow these rules, you can challenge the validity of the rent increase notice at Rental Dispute Resolution Victoria (RDRV).

If you and the rooming house operator do not reach an agreement through RDRV, you can take the dispute to a formal VCAT hearing. VCAT will look at everyone’s evidence, apply the law and make a final decision.

See the information on this page about how to challenge the rent increase at RDRV.

Note: If you are challenging the rent increase notice because it was issued in a way that is against the rules, you should still pay the extra amount or 110% of your current rent (whichever is less) once the start date of the proposed increase arrives. If you don’t do this, and VCAT later finds that the rent increase is legally valid, you may have gone into rent arrears (fallen behind in your rent), which can lead to a notice to vacate. See our pages on overdue rent and notices to vacate and eviction.

Some rooming houses offer additional services outside of your rooming house agreement.

If you request extra services from the rooming house operator, they are allowed to increase your rent to cover the cost of those services. You cannot be forced to accept new or extra services at an additional cost. The operator can only charge you if you and operator both sign a written agreement that states:

• The services that will be provided
• The amount of the rent increase to cover the cost of those services
• The start date for the rent increase

Note: The operator does not need to give you 90 days notice of a rent increase if the increase is for extra services that you have requested and agreed to.

If you think the rent increase is too high, you should first apply to Consumer Affairs Victoria to assess it. This service is free.

You must apply in writing within 30 days of receiving the rent increase notice.

There are 2 ways to apply:

• Use the ‘Rent increase investigation’ section on the last page of the official notice of rent increase that the rooming house operator gave you
• Use the Consumer Affairs Victoria online form: Request for rental assessment

Note: If you live in a rooming house and you do not want to be identified as challenging a rent increase, you can contact Consumer Affairs Victoria to ask them to independently investigate the rent and to negotiate on behalf of residents.

What happens at the assessment

A Consumer Affairs Victoria inspector may contact you to arrange a visit to your home, or they may be able to review the rent increase without visiting you. They will consider the condition of the property, the facilities, and any services provided with the room, and compare the proposed rent increase with those of similar rooming houses in the same area.

During the inspection, you should point out anything that supports your claim that the rent increase is excessive. If the inspector is doing the review without visiting you, you should contact them to give them this information. You may wish to point out:

• The rent paid for similar rooms in the rooming house
• The rent paid for similar rooms in similar rooming houses in the area, this may include the construction, size, number of rooms, facilities, services and access to amenities
• The state of repair of the room and rooming house
• What costs and charges you pay and what the rooming house operator pays for, such as electricity and other utilities
• Any goods and services or facilities that you provide rather than the rooming house operator, such as furnishings and appliances
• Any improvements or modifications you have made to your room, with the rooming house operator’s consent or agreement
• Any change in the rent and condition of the room or facilities or services since the start of your rooming house agreement and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount of each of those increases

Rent assessment report

Once the inspector has carried out an investigation, you and the rooming house operator will receive a written report.

If the inspector’s report says that the rent increase is too high, they may try to negotiate a fairer rent with the rooming house operator. You can also do this yourself – see the information on this page about how to negotiate with the rooming house operator.

Even if the inspector’s report says the rent increase is not too high, you can still negotiate directly with the rooming house operator, and you can still apply to Rental Dispute Resolution Victoria (RDRV) to try to reach an agreement. However, it will be more difficult to succeed without the rent assessment report, or if the report says the increase is not too high.

It is worth trying to negotiate with the rooming house operator about the rent increase if you feel comfortable to do so.

If you have a Consumer Affairs Victoria rent assessment report that says the increase is too high, or you have a report about other rooming house rents in the area, or have done your own research, you can also use this to try to negotiate. If you do come to an agreement, put it in writing, make sure you both sign it, and keep a copy.

If the rooming house operator does not agree to withdraw the notice or reduce the amount of the rent increase, you can apply to Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. If you have a Consumer Affairs Victoria rent assessment report, you can attach it to your RDRV application. Find out more on this page about challenging the rent increase at RDRV.

Even if the rooming house operator is willing to negotiate, it can still be worth applying to RDRV. RDRV gives you the benefit of negotiating with the rooming house operator with an independent mediator present. If you reach an agreement, you can also get it formalised as a VCAT order so it is enforceable. For more about the process of going through RDRV, including tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

You can apply to Rental Dispute Resolution Victoria (RDRV) online using myRDRV, or you can submit your application by email, by post or in person at an RDRV office.

If you have a Consumer Affairs Victoria rent assessment report, you should attach it to your application.

Once you have applied to RDRV, you should give the rooming house operator a copy of your application and any documents or evidence you attached to it.

An RDRV resolution coordinator will review your application and contact you to discuss your options. They may also contact the rooming house operator to understand their side of the dispute.

If the resolution coordinator decides the dispute should progress through RDRV, they will explain the next steps to you. They will also let you know if you need to provide further documents or evidence.

For more on applying to RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

It is important to organise your documents and evidence before discussions with the rooming house operator at Rental Dispute Resolution Victoria (RDRV).

You may have already attached some documentation to your application. Or you may have applied to RDRV with just your details and some basic information about the dispute. The resolution coordinator will let you know if you need to provide further documents or evidence. The rooming house operator may also ask you to provide evidence during the RDRV session, and you can ask them to do the same.

The more clearly organised your documents are, the easier and more efficient your negotiations will be, and the more likely the dispute will be resolved.

Your documents and evidence may include:

• Your Consumer Affairs Victoria rent assessment report, if you have one
• Photos or videos showing the condition of your room or problems with the property or location, including any changes since the start of your rooming house agreement and since the last rent increase
• Rent paid for similar rooms in the rooming house
• Your research into rent paid for similar rooms in similar rooming houses in the area, which may include the construction, size, number of rooms, facilities, services and access to amenities. Even if the Consumer Affairs Victoria rent assessment finds the increase is not excessive, you can still provide your own analysis to support your case
• The cost of any goods and services or facilities that you provide rather than the rooming house operator – for example, furnishings and appliances
• Details about any improvements or modifications you have made to your room, with the rooming house operator’s consent or agreement
• Documentation showing the number of rent increases (if any) in the last 24 months and the amount of each of those increases

You can copy, scan or take photos, but make sure everything is clear enough to read.

For more on providing documents and evidence at RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

After the resolution coordinator has spoken separately with you and the rooming house operator, they may organise a facilitated discussion through Rental Dispute Resolution Victoria (RDRV), where you can both try to negotiate an agreement.

The facilitated discussion usually takes place by phone, videoconference or email. The resolution coordinator may bring you and the rooming house operator together to talk, or they may act as a go-between, passing on claims, offers and options so you don’t need to speak to each other directly.

If the resolution coordinator believes a more structured, face-to-face meeting might be the best option to resolve the dispute, they may invite you both to a formal mediation session.

Because the resolution coordinator cannot give legal advice, it is important that you understand your legal rights before going into a discussion or mediation session at RDRV. You can also organise for a lawyer or advocate to represent you. Find out more on this page about getting help.

If you reach an agreement at RDRV

If you and the rooming house operator reach an agreement at RDRV, you should put it in writing to make sure everyone follows through on their commitments.

You can ask for your written agreement to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves.

For more on what to do if you reach an agreement, and tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you do not reach an agreement at RDRV

You do not have to reach agreement at RDRV. If you and the rooming house operator cannot resolve all the issues through RDRV, or if either side does not wish to continue with RDRV, you can ask the resolution coordinator to refer the dispute to VCAT for a formal hearing.

VCAT will let you know the time, date and location of the hearing. The hearing may take place in person, by phone (teleconference) or by videoconference.

Hearings about rent increases are usually held within 4 weeks of you applying to Rental Dispute Resolution Victoria (RDRV).

If you need to change the date or format of the hearing

If you cannot attend the hearing, you may be able to change the date. Call VCAT on 1300 018 228 or use VCAT’s application form to change a hearing date.

If you want to request a different format for the hearing – for example, if the hearing is going to be by video but you would prefer to attend by phone – you can call VCAT on 1300 018 228 or email renting@courts.vic.gov.au.

You can also let the resolution coordinator know about any dates you are unavailable or your preferred format for the hearing, or you can note these in your RDRV application. However, it will always be up to VCAT to approve these requests.

Before the VCAT hearing, you and the rooming house operator can continue trying to reach an agreement, even outside of Rental Dispute Resolution Victoria (RDRV).

If you reach an agreement, you can ask the resolution coordinator to organise for it to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves, and ask the resolution coordinator to withdraw the VCAT case. Either way, you will not need to attend a hearing.

Find out more about what to do if you reach an agreement on our page on going to RDRV (Rental Dispute Resolution Victoria).

If you and the rooming house operator tried to resolve the dispute at Rental Dispute Resolution Victoria (RDRV) before going to VCAT, anything that was said or done at RDRV cannot be used as evidence at VCAT unless everyone agrees in writing. For example, if the rooming house operator admits during an RDRV discussion that the rent increase is too high, or if you agree that there are rooms for similar rents in the area, these statements cannot be used as evidence at VCAT.

If you submitted documents, photos or videos as part of your evidence for RDRV, you will not need to submit these again to VCAT. However, you may need to provide further documents or evidence for the hearing.

Before the hearing, you should make sure the rooming house operator and VCAT have a copy of any documents or evidence you will use at the hearing. In some situations, the resolution coordinator may help to ensure your documents are ready for the hearing. See more on this page about the types of documents and evidence you might use to support your claim. The VCAT website also has tips on preparing evidence.

The rooming house operator must also make sure you have a copy of any documents or evidence they will use at the hearing. If they present evidence at the hearing that you have not seen, you can ask VCAT to reschedule (adjourn) the hearing so you have time to look at the new evidence. While it may not always be necessary to adjourn the hearing, it can be helpful in more complex disputes.

To prepare for the hearing, get all your evidence together and make a few brief notes outlining what you want to say. Being organised is the key to presenting a good case. For more information on getting ready, see our page about going to VCAT.

Protecting your personal information

In some circumstances, it may be necessary to share personal information relating to issues like trauma, family violence or your mental or physical health, or that of another household member. If this applies to you, you can raise this with VCAT and ask that the information be restricted under the Open Courts Act 2013 (Vic). This usually means that your personal information will be anonymous and not made public. It will be up to VCAT to decide if this is appropriate.

If you have any concerns about providing personal information to VCAT after going through RDRV, raise them with the resolution coordinator.

At VCAT the person who hears and decides on your case is called a member. The VCAT member will listen to each side, review any evidence and make a decision that resolves the dispute.

 What VCAT will consider when deciding if the rent increase notice is valid

When deciding whether the rent increase notice is legally valid, the VCAT member will check:

• If the notice was in the correct form
• If it was given to you the right way
• If it gave you at least 90 days notice before the rent increase takes effect
• Whether the notice correctly states the amount of rent you currently pay and states the increased amount

What VCAT will consider when deciding if the rent increase is too high

When deciding whether the rent increase is too high, the VCAT member will look at:

• The rent paid for similar rooms in the rooming house
• The rent paid for similar rooms in similar rooming houses in the area, which may include considering the construction, size, number of rooms, facilities, services and access to amenities
• The state of repair of the room and rooming house
• What costs and charges you pay and what the rooming house operator pays for things such as electricity and other utilities
• Any facilities or services that you provide rather than the rooming house operator
• Any improvements or modifications you have made to your room, with the rooming house operator’s consent or agreement
• Any change to the rent, condition of the room, facilities or services since the start of your rooming house agreement and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount of each of those increases

What happens if you don’t have a Consumer Affairs Victoria rent assessment report

If you don’t have a Consumer Affairs Victoria rent assessment report, or you did not request one on time, the VCAT member will first decide whether you have a reasonable excuse for not getting a report or for the delay in asking for one.

If they accept that you have a reasonable excuse, you will need to show your own evidence at the hearing that the rent increase is excessive, and the VCAT member will make a decision based on that.

If they do not accept your excuse for not having a Consumer Affairs Victoria rent assessment report, this could mean your rent goes up under a legally valid notice. For this reason, we strongly recommend you request the report and do so on time.

The VCAT member usually makes a decision, called an order, on the day of the hearing. The member will give the order verbally on the day and in writing either on the day or soon afterwards. If you don’t understand the order on the day, ask the member to explain it to you again.

If the VCAT member finds that the notice of rent increase is invalid, they will order that the rent increase cannot go ahead, and the rooming house operator will need to issue a new notice to restart the process.

If you have already paid extra rent under an invalid notice, the VCAT member may also order the rooming house operator to refund you any overpaid amount.

If the VCAT member finds that the notice of rent increase is valid, they will then decide whether the amount of the increase is excessive or not.

If the VCAT member decides the rent increase is excessive and sets the rent to a lower amount or refuses to allow the increase, make sure you ask them to order the rooming house operator to refund any rent that you have overpaid.

If the VCAT member decides that the amount of the rent increase is fair, and you want to stay at the rooming house, you need to pay the increase from the date listed on the original notice, if you have not done so already.

If you are challenging a rent increase, and the start date of the proposed increase arrives, the law states that you must pay the extra amount or 110% of what you currently pay (whichever is less) until the dispute is resolved. If you don’t do this and VCAT later decides the rent increase is valid and fair, you may be in rent arrears (behind in your rent), which can lead to a notice to vacate. See our pages on overdue rent and notices to vacate and eviction.

If VCAT decides the rent increase is not valid or is too high, it should order the rooming house operator to refund the additional rent to you.

If your rent has increased and you are thinking about ending your rooming house agreement because you cannot afford the increase, see our page about ending or breaking your lease. You can also consider Tenants Victoria’s free financial counselling service.

If you need support to respond to a rent increase, help is available.

There are step-by-step guides, self-help tools and other resources to assist you with rent increases.

The Residential Tenancies Act 1997 is Victoria’s main law for renting. It describes the rights and duties of renters and rental providers (such as rooming house operators) in numbered sections.

The sections in this list relate to rent increases in rooming houses. Click on a link to see more about the section.

• Section 44 – Rent increases
• Section 101 – How much notice of rent increase is required
• Section 102 – Resident may complain to Consumer Affairs Victoria about excessive rent
• Section 103 – Application to VCAT about excessive rent
• Section 102A – Consumer Affairs Victoria may investigate rent without application by resident
• Section 104 – What can VCAT order?
• Section 105 – Payment of increased rent pending VCAT decision
• Section 452 – General applications to VCAT
• Section 506 – Service of documents

The Residential Tenancies Regulations 2021 provide more detail and definitions, and specify updates to the Residential Tenancies Act.